State Bank Advises Germany to Diversify Copper, Lithium, and Rare Earth Supplies

KfW, the government-owned financing institution, urges Germany to adopt a “balanced catalogue of measures” to secure its essential raw material supply amid the global shifts of decarbonization and digitalization. A research report by IW Consult and Fraunhofer ISI, commissioned by KfW, highlights supply risks in the production and supply chains of key raw materials: copper, lithium, and rare earth minerals. The analysis identifies significant dependencies in sectors like automotive manufacturing, emphasizing the need for diversification at the core of any resilience strategy. With limited suppliers posing supply risks, the report suggests a comprehensive approach, including promoting technological progress for substitution and material efficiency. Germany’s transition to renewable energy faces challenges in sourcing resources for “green” technologies, necessitating strategic measures to avoid environmental and social impacts.